Indianapolis continued its reign as the most affordable major U.S. housing market, while the Los Angeles area ranked as the least affordable major housing market, the National Association of Home Builders reported today in a fourth-quarter report.

The Housing Opportunity Index ranks metro areas based on the share of homes that are affordable based on the median sales price of homes and median family income for those areas.

Loan servicers and lenders who handle about nine out of 10 subprime loans have agreed to participate in an initiative to help delinquent borrowers by putting foreclosure proceedings on hold for up to 30 days to evaluate alternatives.

The Project Lifeline initiative, targeted at borrowers who are 90 days or more behind on their payments, was announced by six major lenders on Feb. 12 (see Inman News story).

Those lenders — Bank of America, Citigroup, Countrywide Financial Corp., Chase, Washington Mutual and Wells Fargo — say eligible borrowers will be offered workout plans that could lead to formal loan modifications for those who can make payments on new terms for three months.